Holly Roundtree CPA
2019 – 08/20
New IRS guidance may be of interest to fraternal organizations. The guidance concerns the auditing of the exempt status of these organizations. Under tax law, a fraternal beneficiary society is a tax-exempt entity if it 1) is operated under the “lodge system” or for the exclusive benefit of the members of a fraternity itself operating under the lodge system, and 2) provides for the payment of life, sick, accident, or other benefits to the members of the society, order or association or their dependents. The guidance covers two issues: whether most of the fraternal members are provided benefits, and what constitutes “other benefits.” Read the full guidance here: http://bit.ly/30u7bEw.